The Intelligence, Surveillance and Reconnaissance market is anticipated
to reach over USD 46 billion by 2024, at a CAGR of 4% during the
forecast period. The major goal of ISR is success through information
dominance'.

The global ISR market is expected to grow moderately because the usage
of ISR is increasing, and more countries are adopting this technology
for securing the borders of their country.

The growing use of small unmanned systems for surveillance is further
expected to generate the demand for electronic components used in ISR
missions.

Key Market Trends

Growth Led by the Airborne ISR Segment

The global ISR market is segmented based on platforms into land, air,
sea, and space. The land-based platforms segment held the largest market
share in 2018. The air-based platforms segment, led by the increasing
popularity of UAVs and communication system, is expected to be one of
the fastest-growing segments until 2024, and it is likely to control
almost one-third of the market. The space platforms segment is
anticipated to attract the maximum attention and is likely to be the
most-explored segment of this industry.

As seen in some new projects, the market at present is moving toward
consolidation and integration of ISR systems across all platforms, which
may result in efficiency and performance. In the airborne segment, the
demand for electronic support/countermeasures (ESM/ECM), airborne C3,
and surveillance/maritime patrol aircraft is expected to grow steadily,
owing to the increasing need for total situational awareness, air
superiority, and survivability.

Asia-Pacific Will Experience the Highest Growth in the ISR Market

The United States is one of the leading countries, in terms of defense
platforms and spending. The country also spends heavily in order to
bring collaboration between naval, airborne space, as well as land
forces. The United States Coast Guard's Command, Control,
Communications, Computers, Intelligence, Surveillance and Reconnaissance
Systems Acquisition Program is a multi-year effort in order to design,
develop, and integrate the equipment used on the Coast Guard's newest
assets, which also includes the national security cutter, offshore
patrol cutter, long-range surveillance aircraft (HC-130J), and the
medium range surveillance aircraft (HC-144A, C-27J).

Currently, North America holds a major share. However, the market
dynamics are shifting toward the Asia-Pacific and Middle Eastern
regions. China and India are taking huge strides toward strengthening
their armed force capabilities, and are among the top five defense
spending countries in the world. Also, both these countries have plans
to enhance their unmanned aerial systems in the near future, which is
expected to propel the growth of the market in this region.

Competitive Landscape

L3 Technologies Inc., BAE Systems PLC, and General Dynamics Corporation
are some of the major players in the market that dominate in terms of
market share. The Thales Raytheon joint venture has been making slow,
but steady progress, combining technologies to develop better ISR
capability while penetrating deep into the market. The global ISR market
is expected to reach a mature position, wherein, small regional players
are expected to be either acquired or merged with the big giants to
survive in the competition.